Preliminary net loss for 2007 was $35.6 million.
"As expected, our preliminary fourth quarter performance reflects the transitional nature of 2007, both in terms of pricing and development of several new mining operations," ICG chief Ben Hatfield said.
"We experienced some production shortfalls as we began staffing up our new Beckley mining complex and continued expansion of our Sentinel mine.
"In addition, performance at ICG Illinois was hampered by a boiler explosion at its largest customer that disrupted shipments and restricted production.
"These issues, coupled with regulatory delays and increased compliance costs, came to bear on a tight quarter without benefit from the recent rebound in coal prices."
Hatfield said ICG had put operating changes in place during the quarter and these had recently resulted in improved performance at several operations - particularly at Raven and Buckhannon.
"Despite a very difficult year, we are nearing the completion of a year-long transition designed to strengthen our operating base and replace brokered coal income with three new strategic mining projects," Hatfield said.
The new projects represent production of nearly 4 million tons a year - mostly metallurgical coal.
"ICG's ramp-up in metallurgical production is well-timed, as we have signed several attractively-priced contracts with domestic and international customers over the past few months."
At the new Beckley complex in Raleigh County, West Virginia, production will be ramped up to 1.4Mtpa by mid-2008.
The Sentinel complex in Barbour County, West Virginia, is also progressing toward full production of 1.5Mtpa in the second quarter of 2008. The third and final production section came online in January 2008.
Site construction at ICG's Tygart #1 complex in Taylor County, West Virginia, is expected to get underway in mid-2008, with production to begin late 2009.
ICG Illinois' Viper Mine complex is planning construction of a new portal facility to provide more direct access to the mine's remaining reserves, while eliminating the cost burden of maintaining miles of previously mined area. The project is expected to be completed in 2010.
Looking ahead Hatfield remained positive, anticipating higher prices for coal sold both domestically and overseas.
"To achieve our desired operating results, we will focus on managing what we view as the most significant execution risks in a rising market: shortages of labor, inflation of wages and commodity prices, and delays in regulatory permits and approvals, all of which can negatively impact both costs and production."
In 2008 ICG expects to sell 19.5-20.5Mt of coal at an average price of $47-48/t. Average cost per ton is expected to come in at 40-41.25/t.
